Mr. Paul Stevenson reports

SEGO RESOURCES UPDATES THE MINER MOUNTAIN PROJECT - A NEW DRILL TARGET BELOW THE CUBA ZONE & NEW EXPLORATION TARGET NORTH OF SOUTHERN GOLD ZONE, DRILL CAMPAIGN PLANNED

After a full exploration data review, Sego Resources Inc. has recognized alkalic porphyry copper-gold (Cu-Au) mineralization beneath the offsetting flat fault in the Cuba zone at the Miner Mountain property near Princeton, B.C. Diamond drill hole 37 (DDH37) penetrated a shallow-dipping fault and intersected 11 m (metres) of 0.6 per cent copper and 0.13 gpt (grams per tonne) gold at the bottom of the hole (see news release Feb. 28, 2019). Within this interval a two-metre sample was recently analyzed and returned 0.13 gpt palladium in addition to the previously reported copper and gold.

The review also indicated that the geological setting of the Southern gold zone is very similar to the geological setting of the recently recognized gold zone at New Gold's New Afton mine. At New Afton the gold zone is distal and lateral to the main copper-gold mineralization and a similar setting has been proposed for the Southern gold zone. Drilling is planned to test associated deep alkalic porphyry copper-gold mineralization to the north.

Highlights of cuba zone data review

• A new deep drill target within the large IP chargeability high below the Cuba zone under previously intersected, shallow, Cu-Au mineralization from 0 to 150 m in the same zone; this new target is below this shallow mineralization which represents the upper levels of deeper porphyry Cu-Au mineralization.
• The new drill target is also beneath the shallow-dipping fault which offsets the near-surface mineralization in the Cuba zone.
• Palladium, commonly found in alkalic porphyries, was analyzed and confirmed in the Cu-Au mineralized zone at the bottom of DDH37.

Sego plans to test below the Cuba zone as shown in a figure available in the original version of this news release. The exploration data review highlighted a significant intersection of 11 m of 0.6 per cent copper with 0.12 gpt gold, that includes 4.4 m of 1.2 per cent copper and 0.24 gpt gold (see news release Feb. 28, 2019) at the bottom of DDH 37 located below the shallow-dipping fault. Disseminated chalcopyrite mineralization occurs in strongly altered fine-grained intrusion or volcanic host. During the data review the same interval was analyzed for platinum group metals and a two m sample carried 0.13 gpt palladium.

New exploration target south zone

Recent studies have shown that lateral and higher gold zones can be found above deeper porphyry copper-gold mineralization, as seen in the New Afton deposit and their position could be similar in the Southern gold zone. Based on geology, soil and chargeability anomalies, as well as sporadic copper mineralization known to the northeast of the Southern gold zone, Sego Resources plans to drill for potential porphyry copper-gold mineralization north of the Southern gold zone anticipated to occur about 400 to 600 m deep.

Planned drill campaign/website update

A deep drill program is planned to test these two targets. The locations of the drill holes and targets are illustrated on a figure in the original version of this release. The company plans to finance and to complete this diamond drill program in late fall-early winter.

Qualified person

The technical information in this news release was reviewed and approved by Ron Britten, PhD, PEng, who is a qualified person under the definitions established by National Instrument 43-101.

About the project

Sego is 100-per-cent owner of the Miner Mountain project, an alkalic porphyry copper-gold exploration project near Princeton, B.C. The property is 2,056 hectares in size and is located 15 kilometres north of the Copper Mountain mine operated by Hudbay Minerals Inc. Sego has a memorandum of understanding with the Upper Similkameen Indian Band on whose traditional territory the Miner Mountain project is situated. Sego has received an Award of Excellence for its reclamation work at Miner Mountain.

We seek Safe Harbor.